This article first appeared in The Edge Financial Daily on April 17, 2018

KUALA LUMPUR: Supermax Corp Bhd’s shares surged as much as 6.9% on market opening yesterday, hitting as high as RM2.78 a share, following its founder and former group managing director Datuk Seri Stanley Thai’s apology to the prime minister on Saturday for his involvement in the 13th general election.

On the same day, news broke that its chairman Tan Sri Rafidah Aziz has resigned from her post, purportedly over Thai’s move.

The stock eventually pared over half the gains it made, to settle at RM2.68, which was eight sen or 3.08% higher than the previous day’s close.

The former international trade and industry minister has held the position since June 2015.

A Malaysiakini report that came out about 47 minutes before the market opened yesterday wrote that Rafidah had quit her post.

“Pursuant to the ‘apology’ by Stanley Thai to Prime Minister [Datuk Seri Najib Razak] for whatever he did during the 13th general election (GE13), I have resigned from serving as a director of Supermax Corp and as the chairperson, with effect from April 14,” she was quoted as saying.

She also said that while it was Thai’s right to do what he felt he needed to do, she did not share the same sentiments.

The former Wanita Umno chief also said it is a democratic right to support any political party.

“I adhere very strongly to the values and principles of integrity, honesty and to enforce my democratic rights to support any political party and to speak up on any issue of public interest and to fear no intimidation from anyone when I speak the truth,” she added.

Interestingly, Rafidah uploaded a picture on her Facebook page on Sunday morning, with the message “for all to seriously think about”.

The picture contains the following quote from American author Napoleon Hill:

“Before us lie two paths — honesty and dishonesty. The short-sighted embark on the dishonest path; the wise on the honest. For the wise know the truth; in helping others we help ourselves; and in hurting others we hurt ourselves. Character overshadows money, and trust rises above fame. Honesty is still the best policy.”

In confirming Rafidah’s resignation, Supermax indicated that she quit for a “personal reason”. When contacted, Rafidah declined to comment.

In another stock exchange filing, Supermax said Rafidah’s resignation as the independent, non-executive chairman of the company “does not affect the day-to-day business operations nor the performance of Supermax Group”, and that the board will identify a suitable replacement, which it will announce in due course. “It is business as usual at Supermax Group,” it added.

Rafidah, 74, still serves as adjunct professor at the College of Business, University Utara Malaysia, and is also chairman of AirAsia X Bhd, Megasteel, and Pinewood Iskandar Malaysia Studios, according to Supermax’s Annual Report 2017.

Her resignation is not expected to adversely impact Supermax, according to MIDF Investment Bank Bhd analyst Noor Athila Mohd Razali.

“The market hasn’t reacted negatively towards the announcement. I don’t think Rafidah’s resignation will have any impact on the group’s business because most of their products are exported. Her resignation is very much [an] internal [issue],” she told The Edge Financial Daily. Noor Athila added that Rafidah’s move would only affect the group’s business if she was one of the C-suite executives. The research house has maintained its “buy” call on Supermax, with a target price of RM2.70.

Meanwhile, a local analyst who declined to be named said the impact of Rafidah’s move depends on one’s view towards the group. “If it’s just based on the share price, I think it’s still a positive. We will be looking at who will be the next chairman of Supermax,” he said.

He added that Supermax, the world’s second-largest rubber glove maker by volume, is expected to see strong results for the upcoming quarter.

In a press conference on Saturday, Thai, in his apology to Prime Minister Datuk Seri Najib Razak for his involvement in Malaysian politics, said he had been influenced by the opposition during GE13.

Thai has been battling an insider trading charge related to Supermax’s unit APL Industries for the past three years. Supermax’s shares plummeted near 13% from RM2.09 to as low as RM1.82 by Dec 5, following Thai’s conviction for the offence last November. He was sentenced to five years’ jail with a RM5 million fine.

Thai is in the midst of appealing against the sentence — which was the first time a jail term was meted out for the offence.